A UK management consultancy based in Theale is warning senior executives are struggling to cope with the current economic climate.

Berkshire Consultancy has issued a report which claims business leaders are finding juggling cuts with growth targets more difficult than dealing with the recession.

Their document The Agile Leader says top bosses must become more flexible, learn to transfer powers and be open to radical ideas and innovations in order to get on track.

Berkshire Consultancy, in Arlington Business Park, surveyed 200 senior managers selected at random from the top 500 UK companies in June.

A total of 81 per cent said they are finding the current unpredictable economic climate harder to negotiate than the recession.

The challenge is described as ‘significant’ by 92 per cent of senior executives and 65 per cent say they find themselves in unchartered waters. Almost three quarters (73 per cent) fear the focus on cost controls is hampering growth. Sarah Hunter, account director at Berkshire Consultancy, said: “Senior managers are struggling to balance the unique business challenges of simultaneously delivering growth and cost savings and this poses a serious risk to the private sector’s capacity for recovery.

“When leaders face complexity and constraints it is time to adopt more flexible and creative solutions to develop an approach that works for today’s climate.”

Senior managers are also worried regular shifts in the focus of their business to respond to uncertain conditions is alienating staff, and nearly two thirds (62 per cent) are concerned about a negative impact on morale. Ms Hunter said leaders need the courage to be honest about the challenges facing their organisation and to deliver difficult messages personally to staff.

She said: “By adopting an authentic, honest approach, leaders will maintain the trust of staff, even when tough decisions dampen morale.

“This is a difficult balancing act to manage but leaders must pay close attention to their workforce if they are to maintain engagement and morale, enabling them to sustain performance through difficult times.”

The research found the difficult times are creating a looming leadership crisis with 62 per cent of bosses admitting they are dissatisfied in their jobs and 57 per cent unhappy with their employer.

Joanna Knight, director of Berkshire Consultancy, said firms needed to equip their management teams with the skills needed to steer companies through change and uncertainty.

She said: “Agility will be critical if leaders are to deliver ongoing cost cutting and growth objectives over the coming few years.

“Organisations need to focus on identifying and developing the agile learners who will be tomorrow’s leaders.

“They need to concentrate on those employees with greater willingness to adapt and succeed in new situations.”